A recent report highlights the financial challenges faced by female entrepreneurs in the UK, affecting their business growth.
- Nearly two-fifths of female business owners attribute stunted growth to limited access to funding.
- A substantial 60% of female entrepreneurs operate without any external financial support, relying on personal savings.
- The issue is more pronounced among ethnic minority women, exacerbating financial barriers and limiting opportunities.
- Initiatives are suggested to develop financial literacy and support for female-led ventures, highlighting a need for systemic change.
A comprehensive report reveals that almost 39% of female entrepreneurs identify the lack of external funding as a significant barrier to scaling their businesses. This insight underscores a persistent challenge in accessing necessary financial resources, which hampers business expansion.
The report further highlights that a remarkable 60% of these women do not utilise any form of external finance, choosing instead to fund their endeavours with personal savings. This reliance on personal funds indicates a reluctance or inability to secure external investments, which could otherwise spur business growth.
Among ethnic minority female founders, the difficulty in accessing finance is even more acute. A staggering 88% of these entrepreneurs report starting their businesses with personal funds. For many, external financing is not perceived as a feasible option, pointing to deeper systemic barriers that need addressing.
Janan Leo, a female entrepreneur, reflects on these challenges, stating: “Money was incredibly tight and there were days when I sacrificed lunch.” Her experience exemplifies the financial pressures faced by many women, intensified by a broader lack of comfort and familiarity with finance and investment industries.
The report suggests several interventions to support female entrepreneurs, including the development of accessible funding and targeted financial training. By improving financial literacy and providing mentorship, these measures aim to foster an inclusive entrepreneurial environment, offering women the tools necessary for economic success.
A concerted effort to bridge the financial gap could lead to significant economic contribution by female entrepreneurs.
